#TrumpVsPowell
Trump Meme Coin Plummets! Token Unlock Triggers Panic, Price Drops Sharply
The official Trump meme coin (TRUMP) has recently faced severe selling pressure, with the price dropping over 7%. The reason for this is the token unlock on April 18, which triggered market panic and is expected to increase market supply by about 20%. This unlock brings 40 million TRUMP tokens, equivalent to $306 million, which undoubtedly exacerbates bearish sentiment.
Escalating Bearish Expectations, Financing Rates Soar
Due to the large-scale unlock, the open interest financing rate for TRUMP tokens has soared to a historic high of 0.0778%, indicating a strong market reaction to the impending supply increase. This usually means more market volatility and bearish pressure, especially in the context of persistently low demand.
Nevertheless, TRUMP's spot flow remains positively growing, with a capital inflow of $1.99 million in the past 24 hours, sparking interest from some traders and whales, which could potentially drive a market rebound. However, this volatility may also trigger a wave of liquidations, further impacting price trends.
Surge in Trading Volume, Increased Risk
In the past 24 hours, TRUMP coin's trading volume has surged, with derivatives trading volume reaching $854 million, and open interest contracts rising by 10.56%. However, the coin's price is currently about $7.70, down 90% from its all-time high. The price drop and continually increasing supply have triggered more short liquidations, further intensifying market instability.
Long-Term Impact of Token Unlock
As the circulating supply increases, TRUMP coin's price may face further downward pressure. If demand remains unchanged, prices could drop to $6.50. Worse still, the maximum supply of TRUMP coin is 1 billion tokens, and future unlocks may further dilute its long-term value.
Overall, while there may be a rebound in the short term, the long-term outlook for Trump meme coin remains uncertain, and investors should exercise caution.
